Conforming Mortgage

Conforming Mortgage

A loan eligible for purchase by the two major federal agencies that buy mortgages,Fannie Mae and Freddie Mac.

Conforming mortgages cannot exceed a legal maximum amount, which was $322,700 in 2003; it is raised every year. They must also meet the agencies' underwriting requirements regarding credit, documentation, property features, and other factors.

Amortgage in excess of the conforming maximum, which is identical in other respects, will have an interest rate about 3/8% higher. Borrowers who need an amount larger than the maximum will often do better taking a conforming loan for the maximum and a second mortgage for the excess.

References in periodicals archive ?
During QE1, interest rates in the conforming mortgage market decreased by more than 100 basis points.
According to Informa Research analysts, 30-year fixed conforming mortgage rates have leaped an average 0.
The FHLB Mortgage Partnership Finance and Mortgage Purchase programs represent a small but growing part of the secondary conforming mortgage market, which has traditionally been dominated by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
In 1997 the Federal Home Loan Bank of Chicago began purchasing pools of conforming mortgages under its Mortgage Partnership Finance Program.
HUD HAS RELEASED ITS MORTGAGEE LETTER 2001-31, providing the 2002 comprehensive update to the Federal Housing Administration's (FHA's) single-family mortgage limits and adjusting the FHA single-family limits as a result of increases in Freddie Mac's conforming mortgage loan limits.
RBMG's conforming mortgage business will operate as a wholly owned subsidiary of the bank.
It has taken hold in many credit markets and fields of insurance and is now in the process of being adapted to the conventional conforming mortgage market - the market created by the nation's two largest government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
To maintain efficiencies with these margins, conforming mortgage bankers ruthlessly track costs, have made significant investments in technology and are extremely savvy in the secondary market.
42%) adjustable-rate and fixed-rate conforming mortgage loans with a cut-off date pool balance of $967,784,242.
In addition to growing its presence in Guam, PenFed has begun offering conforming mortgages for real estate there.
Interest rates are significantly lower on conforming mortgages than on jumbo mortgages.
Conforming mortgages can be packaged by lenders and sold to two quasi-governmental agencies: the Federal Home Loan Mortgage Corp.